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Sept. 8 (Bloomberg) -- Russia is surpassing Saudi Arabia in oil exports for the first time since the Soviet Union’s collapse as Prime Minister Vladimir Putin exploits OPEC production cuts to gain market share.

http://www.bloomberg.com/apps/news?pid= ... RxMACtvfPw

Key quote:

“OPEC-Russia cooperation is just useful theater for both sides from time to time,” said Edward Chow, an analyst at the Center of Strategic and International Studies in Washington. “OPEC folks are pretty savvy and cynical about Russia’s duplicitous behavior, which started in Soviet times. I do wonder how long Russia can play this silly game.”

Qatari Energy Minister Abdullah bin Hamad al-Attiyah said Aug. 31 that he understood Russia had promised “physical support” for OPEC.

He told reporters today that he was “fed up” with a lack of help from non-OPEC suppliers. “We heard a lot of oral support, we would like to see physical support,” he said upon arriving at his hotel in Vienna, before tomorrow’s meeting.

In a break from normal, the group hasn’t invited Russia and other non-members to observe tomorrow’s (edit:today's) meeting.

OMG. Russia fooled them again.
How backstabbing those commies I cannot believe! There have been no changes from that lousy bolshevick empire!

I think Western leaders would agree with you

Of course Russia aren't the only non-OPEC oil-producing country pumping as much as they can, but as such a huge producer, Russia's actions have a greater effect on supply, and therefore price (as far as physical stock actually affects price, now that non-physical factors like futures markets are so influential).

But, if Russia and the others would cooperate more with OPEC then perhaps oil prices could stabilise more, which would be healthy for everyone apart from the damned speculators who make fortunes on both the rise and fall of the markets, and world industry would be more encouraged to re-start.

Who has the biggest oil company in the world? China. They have been going around and establishing their source for years now. Experts predict their economy will out strip the USA in a few years. Russia is finally getting some money into their coffers. To work in Russia you have to work with the mob. I have a friend who bought 10 million dollars worth of equipment with a partner and went to Russia. The stories he told me were unreal. He said there is lakes of oil just laying around. They set up their camp by a supposively "secret Russian airbase". The commander often visited and gave them a bad time. Another story about how a Russian got a loader stuck in the middle of a river in winter. Had to swim across and then walked 5 miles to their camp. He was white and so cold he could not talk. Damn tough those Russians.

The Barber of Siberia?

canuckbid wrote:Who has the biggest oil company in the world? China. They have been going around and establishing their source for years now. Experts predict their economy will out strip the USA in a few years. Russia is finally getting some money into their coffers. To work in Russia you have to work with the mob. I have a friend who bought 10 million dollars worth of equipment with a partner and went to Russia. The stories he told me were unreal. He said there is lakes of oil just laying around. They set up their camp by a supposively "secret Russian airbase". The commander often visited and gave them a bad time. Another story about how a Russian got a loader stuck in the middle of a river in winter. Had to swim across and then walked 5 miles to their camp. He was white and so cold he could not talk. Damn tough those Russians.

PetroChina are vast but they are mainly importers (purchasers and refiners/users) of energy. They don't own their oil/gas sources overseas, although they have been buying huge stakes in ore mines in Australia and Brazil, to secure their raw production materials. Never mind Muslim world domination, that's taking your eye off the ball completely.

It has been reported in the UK press that Chinese visitors are outspending Arabs in London stores this year.

Red Chief wrote:OMG. Russia fooled them again.
How backstabbing those commies I cannot believe! There have been no changes from that lousy bolshevick empire!

Oh no no you good ol' Commie. You got it all wrong this time...
Russia is bound to be top supplier in the world. Its too vast to ignore.

Our ministry just visited the Russians for a good pat on the back while confiming the longstanding gas relationship we had. As a matter of fact, the empty gasfields below my city of Alkmaar and nearby town of Bergen are going to be the storage fields for Northwest Europe if all goes well.

Soon the US will change policy of importing oil to domestic production (vast reserves and underexplored), use gas from Canada for cars and heaters and the US economy will take a few steps back in oil consumption for the coming years from all the wealth evaporation (read: financial deleveraging).

So OPEC as a cartel, in time, will fall apart in my view as demand will slow down and OPEC producers will find their own volumes to keep up with their domestic budgets. With the exception of Saoudi Arabia, most countries need between $70-90 per barrel of oil to fund policies. And the price of oil will not necessarily climb above $100 dollars with current technological developments. BP just found the third largest new oilfind in the Gulf of Mexico at 10km depth...and many more will follow, I bet.

Say bye to Peakoil. I think its justified to postpone this event some 10 or 20 years forward as will be proven in the coming years of new oil finds. One piece of evidence can be found in Saoudi Arabia where well production is declining for years as they continue to rely on older technology without improving their existing wells. What if they did in the largest superfield currently known on this planet...

Peakoil is a Wallstreet hoax to make money. Our world is way to dominated by investment banks. Time to regulate them greedy fokkers.

Have a good one all.

RobbyG wrote:Soon the US will change policy of importing oil to domestic production (vast reserves and underexplored), use gas from Canada for cars and heaters and the US economy will take a few steps back in oil consumption for the coming years from all the wealth evaporation (read: financial deleveraging).

Rather doubtful inf. I must say.
1) There are some reserves in oil shales in US but no safe and reliable technology of extraction. In 70s American companies with massive support from gov. (mostly Ministry of Defense) wasted tonns of money to develop it without visible success.
2) Canada uses its gas for extracting oil from tar sands. Otherwise the final cost of oil would be higher than $100 per barrel. So I doubt that they have big extra gas for American cars.

You can find a lot of new oil fields by surfing the Internet, I bet.

Red Chief wrote:

RobbyG wrote:Soon the US will change policy of importing oil to domestic production (vast reserves and underexplored), use gas from Canada for cars and heaters and the US economy will take a few steps back in oil consumption for the coming years from all the wealth evaporation (read: financial deleveraging).

Rather doubtful inf. I must say.
1) There are some reserves in oil shales in US but no safe and reliable technology of extraction. In 70s American companies with massive support from gov. (mostly Ministry of Defense) wasted tonns of money to develop it without visible success.
2) Canada uses its gas for extracting oil from tar sands. Otherwise the final cost of oil would be higher than $100 per barrel. So I doubt that they have big extra gas for American cars.

You can find a lot of new oil fields by surfing the Internet, I bet.

Dream on Chief. Your arguments are flown in by airmail this morning. Suck your finger a little longer Comrad.

Lame excuses though. Sorry for the Internet but do you have something to say on the merits?

I could take a bet but what could I take from such a begger like you in the end?

Red Chief wrote:Lame excuses though. Sorry for the Internet but do you have something to say on the merits?

I could take a bet but what could I take from such a begger like you in the end?

He's on the banter spree again. Ladies watch out

Shale is going to have to wait until other reserves are almost depelete unless new tech comes in cheaper and sooner, but there isn't the incentive to spend those research dollars yet.

New offshore oilfields are mostly in deep water, in hostile environments, and are smaller than existing reserves. but the tech is there to exploit them.

However the development costs will be huge and ongoing production costs extreme for new offshore fields.

So don't expect cheaper oil in the future.